$790k per day: KPMG’s govt contracts up to $288m in the last year

Joseph Brookes
Senior Reporter

The value of KPMG’s federal government contracts increased by nearly 25 per cent last financial year, as the consulting giant raked in more than a quarter-of-a-billion dollars from the Commonwealth.

The British-Dutch multinational’s federal contracts were worth more than $288 million in 2020/21, a jump of $56.6 million on the previous year, according to analysis of AusTender contract data by InnovationAus.com.

It equates to KPMG being paid $790,000 every day by federal departments and agencies last financial year.

KPMG landed most of its work from the Defence and Health departments and Services Australia, but picked up lucrative deals across government.

KPMG’s government contracts won it $288 million last financial year. Image: kpmg.com

These figures relate to the actual dollar amount paid to KPMG during the financial year, rather than the value of the contracts awarded in the year.

The 2020/21 financial year was the first full reporting period in the pandemic, and continued a trend of more money going to large consultancies since Covid-19 hit the previous year.

KPMG has a long-running relationship with the Department of Defence, and received $214 million across 225 contracts in the 2020-21 financial year, making up the vast majority of its government contracts by value.

The seven most lucrative Defence contracts netted KPMG more than $167,000 per day, with all but one of these running for a year or more.

The Big Four consultancy also has several multi-million dollar deals with Services Australia, pocketing $15.8 million from the agency last financial year from just 16 contracts.

KPMG’s Health department work netted it $12.4 million in the last financial year across 38 active contracts.

The Digital Transformation Agency was particularly lucrative for KPMG, earning it more than $9.5 million from just 11 contacts during 2020-21.

During the financial year it also received $6.2 million from the Finance department, $4.1 million from the AFP, $3 million from the Education department, $2.6 million from the Department of Agriculture, Water and the Environment, $1.8 million each from the ATO and Infrastructure department, $1.7 million from the Industry department, $1.5 million from the ACIC, $1.1 million from ASIC, $1.1 million from Prime Minister and Cabinet, and more than $2 million from the ANAO.

The escalation in public money paid to consultancies has caused alarm among public sector groups, Labor and the Greens. The Opposition has promised to improve AusTender reporting and to lessen the reliance on consultancies through a revamped public service if it wins government.

Do you know more? Contact James Riley via Email.

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